Asian News - Bangladesh: India's LIC joins hands with two local partners
Source: Asia Insurance Review | Jan 2016
Life Insurance Corporation (LIC), India’s largest life insurer, has tied up with two Bangladeshi companies to begin its joint venture business in the country this year.
Of the partners, Mutual Trust Bank, a leading third-generation private commercial bank, has bought a 3% stake in LIC’s Bangladesh venture, while SEML Group, a fund management company, bought 7%, reported the Daily Star. For every 1% stake, the Bangladeshi investors paid BDT10 million (US$128,500).
LIC Bangladesh will have a paid-up capital of BDT1 billion. LIC India will own 50% of the joint venture, and the remaining 40% or BDT400 million will be raised from Bangladesh’s capital market.
The Insurance Development and Regulatory Authority has confirmed the formation of the joint venture. LIC will be the second foreign insurer to operate in Bangladesh after the US-based MetLife-Alico.